Reviewing Kansai Paint (OTCMKTS:KSANF) and Brenntag (OTCMKTS:BNTGY)

Brenntag (OTCMKTS:BNTGY) and Kansai Paint (OTCMKTS:KSANF) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

22.0% of Kansai Paint shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Brenntag and Kansai Paint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brenntag	2.41%	8.34%	3.39%
Kansai Paint	N/A	N/A	N/A

Dividends

Brenntag pays an annual dividend of $0.25 per share and has a dividend yield of 1.8%. Kansai Paint pays an annual dividend of $12.35 per share and has a dividend yield of 70.6%. Brenntag pays out 42.4% of its earnings in the form of a dividend. Kansai Paint pays out 17.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kansai Paint is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Brenntag and Kansai Paint”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brenntag	$17.16 billion	0.59	$299.37 million	$0.59	23.75
Kansai Paint	N/A	N/A	N/A	$71.19	0.25

Brenntag has higher revenue and earnings than Kansai Paint. Kansai Paint is trading at a lower price-to-earnings ratio than Brenntag, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Brenntag and Kansai Paint, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brenntag	1	8	0	0	1.89
Kansai Paint	0	0	0	0	0.00

Brenntag currently has a consensus price target of $12.80, suggesting a potential downside of 8.64%. Given Brenntag’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brenntag is more favorable than Kansai Paint.

Summary

Brenntag beats Kansai Paint on 7 of the 11 factors compared between the two stocks.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.

About Kansai Paint

Kansai Paint Co., Ltd., together with its subsidiaries, manufactures and sells paints and coatings in Japan, India, Asia, Africa, Europe, and internationally. The company offers decorative coatings for protecting exterior and interior of buildings; automotive refinish coatings for dents and scrapes; and industrial coatings that are used in agricultural machinery, special-purpose vehicles, exterior building materials, metal products, beverage cans, and precoated metals used in metallic building materials and home appliances. It also offers marine coatings; automotive coatings for vehicle's conditions and aesthetics preservation, including film coating materials; and protective coatings for bridges, power equipment, industrial plants, and steel structures, as well as offers fire-resistant coatings. In addition, the company provides coatings solutions through electronic materials coating design technologies; and develops hydrogel fluid carrier beads that are used in various types of wastewater treatment. Further, it designs, manufactures, and sells coating equipment; controls and undertakes painting works; and designs color schemes. Kansai Paint Co., Ltd. was incorporated in 1918 and is headquartered in Osaka, Japan.